COST ACCOUNTING 9TH EDITION

Chapter 16

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CHAPTER 16 EXERCISES
Problem 16-1 1

_______________Co Cash Disbursement Budget For the Month June $ 54% 46% 38,000 15% of sale 51,300 (2,000) $342000 * $20 49,300 6,840,000 6,927,300

June Payments May Payments wages and Salaries Marketing exp Less: Dep CGS Total Cash Disbursement 2 _______________Co Cash Collection Budget For the Month May April Collection April Collection March Collection Total Cash Receipt 3 _______________Co Purchase Budget For the Month July Production reqd for july Add: end inv for july Inv needed Less: op Inv Purchase Required Problem 16-2 1

$ 60% 25% 9% 97% 211,266 90,750 31,860 333,876

Units 11,400

130% of Aug

15,860 27,260

130% of july

(15,600) 11,660

_______________Co Cash Collection Budget For the Month July 80% 18% 98%

$ 548,800 108,000 656,800

July Collection June Collection Total Cash Receipt

Cash Collection For Sep from Aug Sale

126,000

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3 4 Aug Ending Inv=25% next month Sale _______________Co Purchase Budget For the Month June CGS Add: end inv for july Inv needed Less: op Inv Purchase Required Problem 16-4 _______________Co Cash Budget For the Month of Sep Op Cash Bal Add: Expected Cash Receipts cash Sales ON ACCOUNT Current Month Sales Aug month Sale July Sales Total cash available Less: Expected Cash Payements cash Purchases Payment to ON ACCOUNT expanses Paid Total Financing Required _______________Co Cash Budget For the Month of OCT Op Cash Bal Add: Expected Cash Receipts cash Sales ON ACCOUNT Current Month Sales Sep month Sale Aug Sales Total cash available Less: Expected Cash Payements cash Purchases 38750 48000 10000 96,750 149,750 20000 92000 46500 158,500 (8,750) 25% of june sale 80% of sales 25% of july sale 100,000

Units 480,000 175,000 655,000 (150,000) 505,000

$ 13,000

40,000

$ (8,750)

60,000 47500 31000 12000 90,500 141,750 20000

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Payment to ON ACCOUNT expanses Paid Total Expected cash Balance After Payments Sep A/P opening 10000 purchases 100000 ending (12,000) disct (6,000) Payments 92000 OCT A/P 12000 80000 (9,000) 3,000 86000 86000 10000 116,000 25,750

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CHAPTER 16 EXERCISES
Exercise 16.1 Salvey Company Budgeted Cash Receipts for April $ Feburary Sales( 40000 x 12%)= March Sales (70000x97% x 60%) March Sales (70000x x 25%) Total= 4800 407404.7 17500 429704.7

Exercise 16.2 1 Budgeted Cash Collections in May May Sales(150000 x 20%) April Sales(180000 x 50%) March Sales( 100000 x 25%) Total Cash Collections 2

30000 90000 25000 145000

Balance of Accounts Receivable on April 30th April Receivable(180000 x 80%) 1440000 March Receivable(100000 x 30%) 30000 Less Bad Debts (100000 x 5%) -5000 Receivalbes on April 30th 1465000 Balance of Accounts Receivable on May 31st May Receivable(150000 x 80%) April Receivable(180000 x 30%) Less Bad Debts (180000 x 5%) Receivalbes on April 30th

1200000 54000 -9000 1245000

Exercise 16.3 Marketing, General, and Admn Expenses Fixed (71000-40000) Variable (700000*15%)-(700000*1%) Cost of Goods Sold(700000*70%) Increase in Inventory during the month Estimated June cash disbursement

$ 31000 98000 129000 490000 10000 629000

Exercise 16.4 Production requriement of Par in July July Sale Requirement= Closing Stock requried= Total Stock needed= Opening Stock= Units to be produced Units of Tee required for production of par in july= Purchase requirment of Tee 30000 3000 33000 3000 30000 30000*3= 90000

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Production requirement in july= Closing inventory required= Total Inventory required= Less available opening Stock Units to be purchaes Cost of July Purchases 87000*5= 90000 11000 101000 14000 87000 435000 Dollars

Production requriement of Par in June June Sale Requirement= Closing Stock requried= Total Stock needed= Opening Stock= Units to be produced Units of Tee required for production of par in july= Purchase requirment of Tee Production requirement in june= Closing inventory required= Total Inventory required= Less available opening Stock Units to be purchaes Cost of July Purchases 138000*5= 50000 3000 53000 5000 48000 48000*3= 144000

144000 14000 158000 20000 138000 690000 Dollars

Cash required in July for purchase of Tee Payment of June Purchases= 690000*98%*1/3 Payment of July Purchases=435000*98%*2/3 Total Cash required

225400 284200 509600

Exercise 16.5 Crockett Company Cash Budget For the Month of July Opening Balance Exepected Receipts Current Receivalbe Last Month Receivable Total Cash Available Expected Payments Income Tax Payment of Payables 5000 20000 14700

34700 39700 1600

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Current payable Last Month Payable Marketing & Admn Expenses Dividneds Total Expected Payments Balance after payments Fianacing required Desired Closing Balance 3750 7500 11250 10000 15000 36250 3450 1550 5000

Exercise 16.12

Direct Materials Direct Laobur Supervision Indirect materials Property tax Maintenance Power Insurance Depreciation

Flexible Budget at 100% Capacity Fixed Variable Total cost Cost Cost 20000 20000 11250 11250 500 0 500 250 1500 1750 300 0 300 600 1000 1600 200 100 300 175 0 175 1600 0 1600

Direct Materials Direct Laobur Supervision Indirect materials Property tax Maintenance Power Insurance Depreciation Exercise 16.13

Flexible Budget at 192% Capacity Variable Total Cost Fixed Cost 18400 18400 10350 10350 500 0 500 250 1380 1630 300 0 300 600 920 1520 200 92 292 175 0 175 1600 0 1600

The Birch Company Assembly department Flexible Budget for one month 60% Capcity 2280 1920 2856 17280 670 441 2160 345 23752 75% Capacity 2850 2400 3570 21600 670 552 2700 432 29524

Units 3800 Direct Labour Hours 3200 Direct Material Direct Labour Fixed Factor Overhead Supplies Indrect labour Other Charges Total

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Cost per Unit 10.42 10.36

Exercise 16.14 Albanese Inc. Flexible Budget for one month 60% of N.C 1440 960 2880 6048 960 240 1008 432 11568 8.03

Units Direct labour Hours

80% of N.C 1920 1280 3840 8064 960 320 1344 576 15104 7.87

Normal Capacilty (N.C) 2400 1600 4800 10080 960 400 1680 720 18640 7.77

Direct Material Direct Labour Fixed Factor Overhead Supplies Indrect labour Other Charges Total manufacturing Cost Manufacturing cost per unit

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